Lesson 4: Economic Institution
Types of Economic Institutions:
NON-MARKET INSTITUTIONS: Non market activities are those activities
primarily undertaken for the purpose of self-consumption. These activities don't give
profit as they are for self-consumption
• Reciprocity- is a direct exchange of goods or services. It refers to an exchange
that incurs no calculation of value or immediate repayment of the goods or
services.
• Transfer- Redistribution of income that is not matched by the actual exchange of
goods and services.
• Redistribution- Refers to the movement of goods or services to and from a
central authority. The authority may be a single individual, e.g., a chief, or a
group of people, e.g., temple priests.
MARKET INSTITUTIONS: This is the market where buyer are large players like
hospitals, schools, university and hotels and the product purchased is not directly
consumed by them. They use the purchased good to deliver and create goods and
service of their own.
• Market System- A type of economic system that allows the free flow of goods
between and among private individuals and firms with very limited participation of the
government
• Freedom of Enterprise- Entrepreneurs and businesses has the freedom to
obtain and use resources, to produce products of their choice, and to sell these
products in the markets of their choice.
• Capital Goods And Technologies- Rewards technological innovations by
bringing more profit to whomever the idea of a new product or production
technique came from innovations as opposed to imitators.
• Specialization- strategy developed by a business to focus on the production of
a very limited range of products or services in order to gain maximum
productivity, expertise and leadership in the targeted field
• Market Economy- Is an economic system in which economic decisions and the
pricing of goods and services are guided by the interactions of a country's
individual citizens and businesses.
LESSON 5: NONSTATE INSTITUTIONS AND ORGANIZATIONS
An Organization refers to a formally constituted entity, composed of individuals
performing a set of functions for the achievement of a certain mandate, obligation, or
development agency. Organizations can be considered as state and non-state
organizations
The following are state organizations:
• Executive Branch – the office of the President and the departments under the
Office of the President
• Legislative Branch – the Senate and the House of Representatives
• Judiciary Branch
• Armed Forces and the Police
• Constitutional Commission (CSC) and Commission on Electrons
(COMELEC)
• Local Governments
Institution refers to a structure domain of norms, rules, and practices that gives
a sense of order to a specific set of relationships. Examples of institutions include
religion, kinship and family, friendship and association, popular culture, rituals, and
knowledge systems.
The following are considered as the different institutions in society:
• Environment worldviews – the system of beliefs as well as perceptions of the
people vis-à-vis the forest resource (how they see it in relation to their lives.)
• Knowledge systems – the system of knowledge that governs how the people
engage the resource, particularly in terms of technology employed to extract
products from it.
• Tenurial and property system – the manner by which the community defines
the rules of who has access to and control of resources.
• Conflict management systems – the manner by which the community manages
its conflicts vis-à-vis various issues, including conflicts that arise from the use of
forest resources.
• Association systems – the various systems that define the manner individuals
establish relationships among them in the pursuance of a common interest.
MARKET AND ECONOMIC ORGANIZATIONS
Include the corporate environmental users, such as corporations use the
resource for profit, and not for subsistence. Also included these categories are the
financial institutions such as banks.
The Following presents the type of banks:
• Savings Banks • National Banks • Private Banks
• Commercial • Cooperative • Offshore Banks
Banks. banks • Ethical Bank
• Industrial
• Exchange Banks
Development • Internet Banks
Banks • Consumer’s Bank • Investment Banks
• Land • Community • Merchant Banks
Development Development
Banks Banks • Universal Banks
• Indigenous • Credit Unions • Islamic Banks
• Mortgage Banks. • Postal Savings
Banks
• Spare Banks
Corporation, on the other hand, refers to a broad category of nonstate
organizations representing company or group of people that engages in a lawful activity
in relation to a public functions.
A cooperative or coop refers to an autonomous association whose membership is
voluntary toward the attainment of common economic, social and cultural needs or
aspirations.
TYPES OF COOPERATIVE
• Housing cooperative
• Worker Cooperative
• Consumers' cooperative
• cultural cooperative
CIVIL SOCIETY ORGANIZATIONS
Academic and Science-Based Organizations-These include universities, schools,
and colleges, private polling firms which use statistical methods in conducting opinion
polls to guide advocacy and decision-making; and private think tanks and consultancy
groups, which provide technical services both for the formulation and the
implementation of policies.
• Mass Media-The mass media in all its form(print, radio, television) provide
effective conduits for environmental policy information, as well as environmental
policy advocacy.
• Religious Organizations- Organized religion seen in church congregations and
their counterparts in Islam and other religions provide effective venues for
commentary and issue advocacy.
• Nongovernmental Organizations - NGOs are third-party mediating
organizations that facilitate action
• People’s Organizations - POs are grassroots-based organizations composed of
people who are really in the community and are directly ·
Some of the well-known development agencies in the Philippines are the
following:
1. United States Agency for International Development (USAID)
2. Australian Agency for International Development (AusAID)
3. Japan International Cooperation Agency (JICA)
4. Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ)
5. Swedish International Development Cooperation Agency (Sidal
